During a discussion at the National Assembly on the morning of 21/8, Nguyen Thi Hong Hanh, director of the Ho Chi Minh City Department of Justice, stated that the current law mandates notarization or authentication for contracts involving the transfer, gifting, mortgaging, or contributing capital with land use rights and assets attached to land.

However, the revised draft land law no longer includes this provision. Instead, it only stipulates conditions for land users to exercise their rights, such as possessing a certificate, ensuring the land is not disputed or disputes have been resolved, and that the land use rights are not subject to seizure.

Ms. Hanh noted that a policy impact assessment report, spanning over 270 pages, identified land notarization as a solution for connecting and sharing data among notarization, land, and tax agencies. Furthermore, the draft dossier did not identify any issues or shortcomings with the current mandatory notarization regulations.

Consequently, representatives argue that the decision to remove this provision from the land law requires careful consideration, a thorough assessment of its social impact, and an evaluation of potential risks to legal safety in transactions.

Ho Chi Minh City has successfully connected and synchronized its notarization and land databases; however, data alone cannot replace the function of notarization. Notaries not only verify personal and asset information but also assess the legal capacity and voluntary consent of all parties involved.

"Merely relying on databases cannot ascertain whether parties are voluntarily participating in a transaction, for instance, if parents are willingly gifting assets to their children or being coerced", Ms. Hanh stated.

The Notarization Law stipulates that important transactions requiring a high degree of legal certainty must be mandated for notarization by law or decree. According to Ms. Hanh, if the Land Law does not address this, its application could lead to varying interpretations and a lack of a basis for official extracts. Therefore, she proposed retaining the regulation as it stands in the current law.

Representative Nguyen Thi Hong Hanh speaking on the morning of 21/8. Photo: National Assembly Portal

Le Thi Thanh Lam, deputy head of the Can Tho City National Assembly Delegation, also urged a comprehensive assessment of the legal and economic impacts before removing the mandatory notarization provision from the Land Law.

She acknowledged that streamlining procedures and reducing compliance costs to facilitate convenience for citizens and businesses is essential. However, land use rights transactions cannot be solely evaluated on this criterion; they must also safeguard citizens' property rights and ensure effective state management.

Land is a unique and valuable asset, impacting numerous stakeholders and broader societal interests. While removing the mandatory notarization requirement from the law might reduce immediate time and costs, it is crucial to consider the potential social costs if transactions are invalidated, fraud occurs, or disputes arise. "An error in one transaction not only affects the parties involved but can also lead to consequences for subsequent transactions and the stability of the market", Ms. Lam stated.

In a subsequent explanation, Trinh Viet Hung, minister of agriculture and environment, stated that notarization of land transactions is an administrative procedure and therefore does not necessarily need to be stipulated within the law itself. This content, he added, will be moved to a decree guiding the implementation of the Land Law.

"The legitimate rights and interests of citizens in land transactions are not lost. The state always ensures the legitimate rights and interests of parties involved in land transfers", the minister affirmed.

Vu Tuan